October 2018 Eurozone Markit manufacturing PMI final 2 November 2018
- Flash 52.1. Sep 53.2
- Lowest Aug 2016
- Export orders 49.1 vs 48.9 flash. Sep 50.2. 5 year low
- Output 51.3 vs 51.2 flash. Sep 52.7. Lowest since Dec 2014
Soggy data but it’s only temporary 😉
On the flipside, inflationary pressure grew;
“Meanwhile, input price pressures intensified on the back of rising energy, food, fuel and metals prices. Latest data showed input price inflation accelerating since September and remaining at an elevated level. Output charges were raised where possible in response, with the net increase remaining historically marked, albeit the lowest in 14 months.”
So that raises the question, what does the ECB do if they face a slowing economy but rising inflation? They can’t have it both ways so do they raise rates on inflation at the risk of slowing the economy further?
The rest of today’s PMI’s
- Italy 49.2 vs 49.7 exp, prior 50.0.
- France 51.2 vs 51.2 exp, prior 51.2
- Germany 52.2 vs 52.3 exp, prior 52.3
- Spain 51.8 vs 50.8 exp, prior 51.4.
- Japan 52.9 vs 53.1 prior (Thur)
- China Caixin 50.1 vs 49.9 exp. Prior 50.0 (Thur)